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Hong Kong Land
06 Jul 2020 (309 views)

I bought 15,000 shares of Hong Kong Land a few weeks ago. It now shows a paper loss of 20% or SGD 20,000. It is quite a large loss.

The current price is US $4.17 compared to $7.19 on 1 Mar 19. The drop is 42%. 

The price earning ratio is 49 times and the dividend yield is 7.84%. The operating profit of this company is healthy, but they wrote down the value of their properties by a hefty sum, causing a large drop in profit. In the previous two years, they wrote up the value of their properties.

If I ignore the impact of property revaluation, the price earning ratio is around 10 times, which is acceptable for a blue chip company.

The price to book is 0.25. This means that the value of the assets is 4 times of the current price. I think Hong Kong Land is under-valued.

I have decided to buy another 15,000 shares for another SGD 90,000. This will be another of my big investment.

I look forward to a price recovery. Meanwhile, my dividend yield is 7.8%. Even if the dividend is cut by 25%, it should still give 6%.

I hope that I made the right decision.

 


Hong Kong Land
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I bought 15,000 shares of Hong Kong Land a few weeks ago. It now shows a paper loss of 20% or SGD 20,000. It is quite a large loss.

The current price is US $4.17 compared to $7.19 on 1 Mar 19. The drop is 42%. 

The price earning ratio is 49 times and the dividend yield is 7.84%. The operating profit of this company is healthy, but they wrote down the value of their properties by a hefty sum, causing a large drop in profit. In the previous two years, they wrote up the value of their properties.

If I ignore the impact of property revaluation, the price earning ratio is around 10 times, which is acceptable for a blue chip company.

The price to book is 0.25. This means that the value of the assets is 4 times of the current price. I think Hong Kong Land is under-valued.

I have decided to buy another 15,000 shares for another SGD 90,000. This will be another of my big investment.

I look forward to a price recovery. Meanwhile, my dividend yield is 7.8%. Even if the dividend is cut by 25%, it should still give 6%.

I hope that I made the right decision.